Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider in the Otto Development Corporation case we discussed in class. We just change the price of high-end units from $500 to $600. Here is
Consider in the Otto Development Corporation case we discussed in class. We just change the price of high-end units from $500 to $600. Here is a brief summary of the parameters. The maximum capacity is 800 condominiums. Each apartment is 1500 sq.ft and BKE is 450 sq.ft. 9 BKE sq. ft. marble +6 BKE sq. ft. ceramic +4 BKE sq. ft. wood Rating of Apt. =450 sq. ft. The formulation of problem is the same in slides. - x1: number of luxury condos. - x2 : number of high-end condos. - x3 : number of average-market condos. - M1 : quantity of marble used in all the luxury condos. - M2 : quantity of marble used in all the high-end condos. - M3 : quantity of marble used in all the average-market condos. - C1 : quantity of ceramic used in all the luxury condos. - C2 : quantity of ceramic used in all the high-end condos. - C3 : quantity of ceramic used in all the average-market condos. - W1 : quantity of wood used in all the luxury condos. - W2 : quantity of wood used in all the high-end condos. - W3 : quantity of wood used in all the average-market condos The sensitivity report is as follows. Please answer the following questions. a. What is the optimal solution and optimal revenue if the revenue per sq. ft. of a luxury condo increases to $850 (was initially $700 )? [2 pts] b. What is the optimal solution and optimal revenue if the revenue per sq. ft. of an high-end condo decreases to $550 (was initially $600 )? [2 pts] c. What is the optimal solution and optimal revenue if the demand for high-end condos increases by 100 ? [ 2pts ] d. What is the optimal solution and optimal revenue if the demand for high-end condos increases by 10 ? [ 2 pts] e. What is the optimal solution and optimal revenue if the demand for luxury condos decreases by 100 ? [ 2 pts] f. What is the optimal solution and optimal revenue if 1,000 additional sq. ft. of marble ar available? [2 pts]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started